In a certain economy, the components of aggregate spending are given by: C = 60 + 0.6(Y - T) - 1,000rI = 200 - 1,000rG = 200NX = 50T = 100Given the information about the economy above, what is the short-run equilibrium output if the real interest rate is 4 percent?
A. 925
B. 450
C. 1,125
D. 370
Answer: A
You might also like to view...
According to the textbook, Manning and his colleagues found that people with $1,000-deductible policies spent ______ on health care relative to people with first-dollar coverage.
A. 50 percent more B. the same amount C. 40 percent more D. less
The Heckscher-Ohlin model is an alternative to the classical theory of international trade that focuses on the factors of production that countries possess
Indicate whether the statement is true or false
Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 8?L?K. The firm has _____ units of capital. If the firm uses an efficient production method and hires _____ workers, it can produce _____ units of output.
A. 100; 100; 1,200 B. 100; 225; 800 C. 225; 100; 1,200 D. 225; 225; 1,000
A person will become informed on a political issue if
A) it is considered an important issue to society at large. B) he perceives the benefits of becoming informed as greater than the costs of becoming informed. C) it is regularly discussed on television news shows. D) it is regularly written about in the daily newspapers. E) none of the above